Middle East Loans

Abu Dhabi's Mubadala has tightened the margin on its $1.75bn three year refinancing, despite the price on the original loan already being “eye-wateringly low”, according to one banker.

Kuwaiti petrochemicals firm Equate is taking its time to refinance $6bn of loans, with bankers blaming the tight pricing and deal size for the slow progress of the self-arranged transaction.

Dubai banks are stepping into the loan market as Commercial Bank of Dubai refinances a $450m three year loan, while Emirates NBD nears close for its deal.

Loan issuance from Omani borrowers, some of them debut deals, is in full flow and demand from international investors holds strong despite Oman’s recent downgrade.

Qatar National Bank signed its €2.25bn loan on Wednesday, increasing the deal by €750m in syndication and soaking up strong demand from lenders in Europe and China.

Petroleum Development Oman is holding a bank meeting in London on Friday to liaise with new banks which could be interested in its $3bn loan.

Financial institutions have been propelling loan activity this year raising $4.2bn in Asia ex-Japan to become the third largest contributor to total volumes year-to-date. While Indian, Indonesian, Malaysian and Philippine banks have been regulars in the market, banks from geographies as far away as Latin America and the Gulf are also tapping Asian, specifically Taiwanese, liquidity, write John Loh and Shruti Chaturvedi.

Qatar National Bank will increase its loan from €1.5bn to €2.25bn, according to a banker close to the deal and top tickets receive all-in pricing of 126.7bp, according to a second banker.

Petroleum Development Oman is bringing in more banks after first launching its debut loan as a club deal with a small group of lenders.

Omani electricity firm Majan Electricity Company has secured a $350m loan, according to two bankers, and sister company Dhofar Power Company is close behind with another deal.

Bank Muscat signed its $315m club loan late on Monday and all, barring one, of the lenders also arranged the bank’s bond issue last month.

A $100m three year loan for Doha Bank has launched into syndication with Mega International Commercial Bank as sole mandated lead arranger and bookrunner.